Partner announces its second stage of market penetration in Israel and
announces new revolutionary rate plans

Rosh Ha'ayin, Israel - May 16, 2000 - Partner Communications Company Ltd. (NASDAQ: PTNR) today announced the launch of the second stage in its penetration plan into the Israeli cellular market. After completion of the first stage, which began with Partner's commercial launch in January 1999, and which has brought the orange* network in Israel to gain 14% of the cellular market, Partner introduced today new revolutionary rate plans for subscribers, which make the price of calls in Israel the best in the cellular market.

The new rates, under the "orange* to go" package, allow orange* subscribers to make calls to other orange* subscribers, and to subscribers of Pelephone, Cellcom, and Bezeq, at rates which are better than those regularly paid by subscribers of other cellular networks in Israel. Rates for calls within the orange* network, or for calls originating on the orange* network and terminating on a Bezeq's subscriber fixed phone, will be charged at NIS 0.56. Rates originating on the orange* network and terminating on Pelephone and Cellcom networks will be charged at NIS 0.98. These rates include 17% VAT. No additional charge will be made for call completions on other networks or for interconnect.

The new rates introduced today enable subscribers to benefit from the advantages of a most advanced GSM network, without contractual obligations, and without monthly payments or commitment for usage of any number of minutes on the network. In addition, subscribers will benefit from an opportunity to purchase a wide range of handsets from leading manufacturers at a wide range of prices, and with a variety of levels of functionality. A full range of Hebrew enabled handsets, capable of receiving and generating Hebrew language SMS messages, were also introduced today. The handsets can be purchased at 36 installments, backed by credit card, starting at a monthly charge of only NIS 10.

Existing subscribers on the orange* network will be given the opportunity to switch to the new rate plans (according to the rules pertaining, including payment of the residual value of the handset) and each customer will be offered that specific rate plan which best suites his or her particular usage pattern.

"The revolution which Partner has introduced into the Israeli cellular market, goes through yet another stage", said Amikam Cohen, Partner's CEO. "We have introduced to the Israeli consumer the GSM technology, previously unknown in Israel, and the coverage, the voice quality, the customer services and a range of data and value added services which allow the Israeli consumer to benefit from one of the most advanced networks in the cellular world. Starting today new customers in the cellular market, as well as customers churning to the orange* network from other cellular networks, will also benefit from the widest range of handsets and from the best value in the cellular market in Israel by paying the lowest rates in a generally offered rate-plan in Israel. Our valued existing customers will also have the opportunity to benefit from these revolutionary rate plans, and will continue to benefit from the unmatched range of services they have already grown accustomed to enjoy."

Partner Communications Company Ltd. is the only Global System for Mobile Communications, or GSM, mobile telephone network operator in Israel. The Company commenced full commercial operations in January 1999 under the international Orange Brand name and, through its network, provides quality of service and a range of features to over 426,000 subscribers in Israel. Partner provides its subscribers with international roaming services with 168 operators in 70 countries. The Company's shares are quoted on NASDAQ under the symbol PTNR and on the London Stock Exchange under the symbol PCCD. (For further information: http://investors.partner.co.il)